FX.co ★ Technical analysis of NZD/USD for April 24, 2015

Fundamental overview:

NZD/USD is expected to consolidate with a bearish bias after hitting a six-day low of 0.7535 on Thursday. Kiwi sentiment was hurt after RBNZ Governor John McDermott said the central bank is not considering any interest rate hikes at present and monetary policy should remain stimulatory for a prolonged period. NZD/USD is also weighed by the kiwi sales on buoyant AUD/NZD cross and soft dairy prices. But NZD/USD losses are tempered by the weaker dollar sentiment, positive investor risk appetite, and NZD-USD interest differential and positions adjustment ahead of weekend.

Technical comment:
The daily chart is mixed as the MACD is bullish, but stochastic is falling from overbought levels.

Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.7490. A break of that target will move the pair further downwards to 0.7435. The pivot point stands at 0.7640. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.7685 and the second target at 0.7740.

Resistance levels:
0.7685
0.7740
0.7790

Support levels:
0.7490
0.7435
0.74